Philippines identifies 10 cities to host next wave of IT/BPO growth

DOST-ICTO (The Department of Science and Technology-Information and Communications Technology Office) as well as other important industry players in Philippines have recognized the locations for growth consisting of 10 cities which have more potential to host companies in the IT and IT-BPO sector as compared to some of the currently established hubs Cebu, Metro Manila and Clark.

philippines bpo

According to Gillian Virata who is senior executive director at Business Processing Association of the Philippines (BPAP), the top 10 cities for IT/BPO supposed to create the next wave are Sta. Rosa in Laguna, Cagayan de Oro, Malolos in Bulacan, Davao, Iloilo, Bacolod, Dumaguete,  Lipa in Batangas and Baguio.

Virata said that the Philippine BPO and IT industry can find so much untapped talent and potential in the next wave cities. These cities would play an important role in supporting the industry’s growth. These cities also provide more attractive options than the existing hubs of Philippine BPO and IT industry and have the power to make a difference to the lives of the people. Identifying these 10 cities for IT/BPO industry is just the first step towards making opportunities available to the people.

Scorecard for Next Wave Cities in Philippines

A tool called Next wave Citiestm Scorecard identifies the crucial areas for development based on some indicators given by DOST-ICTO and BPAP. The data so obtained is updated every year and a report is published which lists the top 10 cities and municipalities. The scorecard assesses the suitability of a particular location to support the IT/BPO companies. Several factors are taken into account for such an assessment:

  • Availability of infrastructure and talent.
  • Connectivity via fiber-optic cables or other networks.
  • Cost of factor inputs.
  • Accessibility.
  • Business environment inclusive of threat due to natural disturbances or factors of safety and security.

Apart from the top 10 New Wave Cities (NWCs) the scorecard consists of 34 cities and municipalities which have been considered as collective ‘metro areas’.

75% of the university graduates from Metro Manila hail from schools outside the city. This has awakened the industry majors to the possibility of immense potential lying outside the established hubs which will enable them to attract an increased amount of foreign investment.

All the services including office space and recruitment are concentrated over at Metro Manila putting huge pressure over the industry. The identification of the new wave cities would definitely ease inflationary pressure on the IT/BPO industry and kick-start the next wave of growth of IT/BPO sector in Philippines.

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